Ten year Project$120$ unit Apartment ComplexPurchase Price:$$3,056,600$Holding Period:$10$ YearsDepreciation in years:$30$Land Value $\%$ of Price:$25\%$Loan to Value:$70\%$Term of Loan:$20$ yearsPoints to close:$2\%$Interest Rate:$6\mathrm{.}5\%$Prepayment Penalty $1\%$ of the loan before $15$ yearsInvestor Tax Rate $34\%$Growth rate in rents:$4\mathrm{.}5\%$Vacancy Rate:$13\%$Cap rate for resale:$12\%$ Going out Cap rateSelling Costs:$7\%$ of selling priceCapital gain s Tax Rate:$15\%$Target Equity IRR after Tax:$12\%$AVERAGE RENT Per TypeAverage Rent# of UnitsStudio Apartments: $$40040$One bedroom Apartments: $$60050$Two bedroom Apartments: $$80030$Annual Operating Expenses:Management $\%$ of effective gross income:$8\%$ including ManagerOther Annual Income:$0$Property Taxes:$$136,329$Property Tax Growth rate:$2\%$ yearProperty Insurance:$$35,000$Property insurance growth rate:$2\%$Maintenance and repair:$$200,000$ includes replacement reservesOther Expenses$$12,000$Other Expenses Growth rate:$4\%$Summary Information:Purchase Price:$$3,056,600$Acquisition Costs:$$0$Acquisition Going in Cap rate:$\_\_\_\_\_\_\_\_\_\_$Initial Equity Investment Including Points:$\_\_\_\_\_\_\_\_\_\_$Cost Recovery Value of Improvements $($Depreciation$)\_\_\_\_\_\_\_\_\_\_$Useful Life in Years$11\mathrm{.}5$ Month year Cost Recovery Deduction $($IRS Rule$)\_\_\_\_\_\_\_\_\_\_$Full yr depreciation based on $27\mathrm{.}5$ yrs $($IRS rule$)\_\_\_\_\_\_\_\_\_\_$Disposition Cap Rate based on $11$th yr NOI$10\%$Projected Sale price $($end of $10$yrs$)\_\_\_\_\_\_\_\_\_\_$Projected Cost of Sale $($end of $10$ yrs$)\_\_\_\_\_\_\_\_\_\_($based on $7\%$ of price$)$Acquisition Financing InformationLoan amount:$\_\_\_\_\_\_\_\_\_\_$Interest Rate:$6\mathrm{.}5\%$Payments per yr:$12$Periodic Payment:$\_\_\_\_\_\_\_\_\_\_$Annual Debt Service:$\_\_\_\_\_\_\_\_\_\_$Amortization Period:$20$ yearsTerm:$20$ yearsLoan cost at $2\%$ of Loan:$\_\_\_\_\_\_\_\_\_\_$Effective cost of Borrowed Funds:$\_\_\_\_\_\_\_\_\_\_($with prepay ment at end of $10$ yrs$)$Other InformationLeaseTerm information $($units$)$:Month to Month $1$ year $+2$ year$+$Studio Apartments: $30100$One bedroom Apartments: $30155$Two bedroom Apartments: $15105($Remember if on lease other than month to month cannot increase rent until lease is up$.$ Assume lease term ends at period $($ ie$.1$ Year leases end in $1$ year and $2$ year in $2$ years. Also assume similar rotation for each year$).$Property Valuation:Assume Property increases in value at rate if inflation.